Law firm Slater & Gordon Limited
(ASX:SGH) has walked away from a potential lawsuit against QBE Insurance Group Limited
(ASX:QBE) over its recent profit downgrade, after finding no evidence the company breached disclosure obligations, according to media reports.
QBE last month said it would post its first annual loss in 12 years for the year to December 31 due to provisions and writedowns in its US business.
Slater & Gordon class action lawyer Ben Phi told media the law firm investigated a potential class action, however found the company did not breach disclosure obligations.
The news comes after QBE had its credit rating downgraded following that warning of a potential $250 million loss for the 2013 calendar year.
QBE generated a net profit of $520.7 million in the first half of fiscal 2013
